Coffee Is The Worlds Second Largest Commodity - 1521 Words

With the increase in demand of coffee within coffee drinkers globally, coffee has successfully ensured its place to become the world’s second largest commodity. (cite) Coffea, commonly known as the coffee plant, is the member of the Rubiaceae family (USDA 2015). While there are various species of the coffee plant, Coffea Arabica and Coffea Canephora are mostly grown. However, between them Coffea Arabica is considered to have greater quality and flavor. Brazil is known as the top manufacturer of coffee followed by countries such as Vietnam, Indonesia, Colombia, and Ethiopia (USDA 2014). The rising demand for coffee has amplified the dependence of the coffee industry on countries that grows coffee. Using pesticides on coffee fields seemed to be an ultimate solution for farmers who were hoping for maximum productivity of coffee. Pesticides are used in agriculture in order to protect plants from fungal diseases, pests, and insects that affect the growth of food crops. On the short run, using pesticides has an advantage as it increases the production and the quality of coffee. However, pesticide practices have detrimental impact on the environment, the quality and the amount of coffee manufactured, and the health of the farmers in the long run. The agricultural practice that involves the usage of pesticides has contributed in the exploitation of the environment. The consumption of pesticides in countries producing coffee has increased rapidly over the decades. For example,Show MoreRelatedDrug Trafficking Has Caused The Coffee Industry Essay1235 Words   |  5 Pagescombination with rampant drug trafficking has caused the coffee industry in Colombia to struggle for many years, though Colombia’s long history with coffee predates that struggle. The coffee plant first reached Colombia sometime in the late 1700s (Encyclopedia of World Trade: From Ancient Times to the Present) and Colombia entered the coffee trade in the 1830s (Wikipedia, Coffee Production in Colombia). The geography of Colombia lends itself well to coffee production. Located in southern South America, ColombiaRead MoreCoffee And The Global Community1533 Words   |  7 Pagesthis is Coffee. Many 1st world nations indulge on this commodity yet very few n ations actually grow and import coffee. The word â€Å"coffee† comes from Kaffa, a region in Ethiopia where it is believed the coffee bean was discovered. Coffee is so important in the global marketplace that it is the second most valuable traded commodity in the world, only after crude oil. So if you think about the importance of coffee, one can understand why this commodity is second place to oil, as coffee outputsRead MoreNotes On Commodities And Consumption1728 Words   |  7 Pages Commodities and Consumption There are many commodities in our life that plays an important part in our daily consumption. Such commodities link us to the people around the world who produce these for us. The purpose of this assignment is to choose a produced outside of the US, and write an essay by conducting research using sources such as use information directly from the store or company, academic articles/books, the Internet and personal interviews. The essay will answer questions about the locationRead MoreCoffee – a Global Commodity1024 Words   |  5 PagesCoffee – a Global Commodity John Bellusci May 29, 2011 Abstract What is a commodity? A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are used as inputs in the production of other goods or services. There are different commodities that are used such as sugar, gas,oil,wheat,diamonds, gold, corn, copper, silk and coffee. Coffee has a long history of operating within a market economy since the 1800’s (Unknown, 2011). CoffeeRead MoreA Crisis in the World of Coffee Essay530 Words   |  3 PagesCoffee is the second largest export commodity in the world after oil and is exported from 52 countries in the south. The current crisis has evolved through a series of changes in the industry. Since the liberalization of the coffee market, the price volatility has amplified. The world production of coffee has risen dramatically in the past three years mainly due to the production increase in the two world leading countries Brazil and Vietnam. Vietnam has for example increased production by 1400 %Read MoreDrinking A Cup Of Coffee1237 Words   |  5 Pagesdrinking a cup of coffee will never be the same. Coffee has become a major part of many people’s lives. It is a global commodity. Behind the oil industry, coffee places second on the world’s most traded commodities. Every day more than 2 billion cups of coffee are consumed (â€Å"The Economics of Coffee†). The World coffee market is con trolled by Kraft General Foods (produces Maxwell House), Proctor Gamble (produces Folgers), Sara Lee (Chock Full O’Nuts) , and Nestle (â€Å"The Economics of Coffee†). These majorRead MoreCoffee rust disease is the greatest threat to the coffee industry worldwide and has the potential1000 Words   |  4 PagesCoffee rust disease is the greatest threat to the coffee industry worldwide and has the potential to improve or hurt Brazil’s economy while having a significant impact on the United States. Coffee is second only to petroleum for exports in developing countries. Over 500 billion cups of coffee are consumed globally each year. The worldwide coffee supply comes primarily from Central and South America accounting for 67 percent of production (Goldschein, 2011). Coffee rust disease is a wind-borne fungusRead MoreGlobal Local And International Trading990 Words   |  4 Pagesglocalization. History of the two different coffee cultures Coffee, apart from being the world’s second most traded commodity, has long been considered a type of culture. Drinking coffee is not simply enjoying the flavor of the popular drink, but it also contains a lot of cultural meanings. What would globalization create from them, since each place has its own coffee culture? Founded in 1971 by Zev Siegl, Jerry Baldwin and Gordon Bowker, the Starbucks coffee company has gone through different stagesRead MoreOne Of The Reasons By Brazil’S Economy Is An Important1349 Words   |  6 Pages One of the reasons by Brazil’s economy is an important player in the world today is its size. They are the world’s fifth largest country by size and the ninth largest by nominal GDP. Other comparisons include the fact that they represent the largest economy in Latin America and second largest in the Americas. Because imports and exports are a significant component of Brazil’s GDP, at 27%, trade represents a key factor in Brazil’s economy (Brazil Economy: Facts, Population, GDP, Inflation, BusinessRead MoreCoffee Crisis1164 Words   |  5 PagesUnit 4 Assignment 1 â€Å"The Coffee Crisis† By Stephen Quinlan amp; Jose Gomez-Ibanez Case Analysis Michael G. Castro Capella University MBA6008 – Global Economic Environment Professor Hadsell February 13, 2013 Introduction Stephen Quinlan and Jose Gomez-Ibanez describes, in â€Å"The Coffee Crisis†, that in 2004 the governments of coffee producing countries were considering how to respond to rapid decline to coffee prices. In 2001, coffee prices hit a forty-year low, which resulted